IAS 10 · Case studies (Step 3 of 5)
Practical case
IAS 10 Events after the Reporting Period — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Kalvero SA, a fictitious distributor of medical equipment (hospitals, clinics, practices), 260 employees, three warehouses, one services subsidiary, IFRS financial statements, year end 31 December, amounts in euros; governance with a management board and a supervisory board made up solely of non-executives.
L1 · Guided · From 31 December N to end of January N+1
The case reads as a timeline: context and year end (level 1), January then February news (levels 1 and 2), the last days of March up to authorisation (level 3), then conclusion and year-end file (level 4). At each date, the same question: did the condition revealed exist at 31 December? All data (amounts, rates, company law, governance) are case data; professional judgements are flagged as such. Teaching assumption: tax effects ignored unless stated otherwise.
Standard involved: IAS 10 Events after the Reporting Period. On 31 December N, Kalvero closes its accounts. The first weeks of January bring news. Follow the timeline: for each event, ask whether the condition it reveals existed at 31 December. The questions are guided.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Kalvero SA, a fictitious distributor of medical equipment (hospitals, clinics, practices), 260 employees, three warehouses, one services subsidiary, IFRS financial statements, year end 31 December, amounts in euros; governance with a management board and a supervisory board made up solely of non-executives.
Initial event · L1·From 31 December N to end of January N+1 · Current stage
Standard involved: IAS 10 Events after the Reporting Period. On 31 December N, Kalvero closes its accounts. The first weeks of January bring news. Follow the timeline: for each event, ask whether the condition it reveals existed at 31 December. The questions are guided.
Pieces added
New period · L2·February N+1 · Upcoming: unlocks after the current stage
New period · L3·March N+1, up to authorisation · Upcoming: unlocks after the current stage
New period · L4·Conclusion — the year-end file · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
2 documents to work from at this level.
Document 1Supporting document
| Date | Step |
|---|---|
| 31/12/N | end of year N |
| 05/02/N+1 | public announcement of profit (planned) |
| to be determined | authorisation for issue of the N statements (see level 3) |
Tax rate 25%; the questions at this level concern profit before tax.
First level: all the data is in the brief and the pieces of this level.
4 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Classify the January events.
Drag each item into its category, or tap the category under the item.
Judgement of 12/01 on the pumps delivered in N
Liquidation on 28/01 of the customer in arrears since September N
Supplier price increase announced on 20/01 for N+1
3 more questions will appear once the current question is complete.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Answer every part to submit the level and see the conclusion.
Normative references